Integrated Report and Accounts 2017

Focused growth

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Securing your world

Our enduring strategic aim is to demonstrate the values and performance that make G4S the company of choice for customers, employees and shareholders.

We aim to do this by delivering industry-leading, innovative solutions and outstanding service to our customers, by providing engaging and rewarding work for employees and by generating sustainable growth and returns for our shareholders.

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Focused
Growth

“Since 2013, revenues from core businesses have grown by 17% and Adjusted EPS by 48% while generating operating cash flow of £2.5 billion.”

Ashley Almanza, Group Chief Executive Officer

Watch our results video Chief Executive’s Review (176 KB PDF)

GOOD governance in support
of sustainable growth

“I am delighted that, building on the foundations laid in recent years, the Group has improved both its performance and financial position in 2017.”

Financial Highlights & KPI’s

Financial Highlights (8.2 MB PDF)
RevenueKPI

£7.4bn+3.2%

(2016: £7.2bn)

Adjusted PBITAKPI

£496m+4.2%

(2016: £476m)

Adjusted EPSKPI

17.9p+5.9%

(2016: 16.9p)

Operating cash flowKPI

£527m-16.7%

(2016: £633m)

Employee engagement surveyKPI

84%

Favourable response in 2017

CSR Performance Overview

CSR Highlights (71 KB PDF)
 

47%

Reduction in employee fatalities

 

65

Human rights control self assessments of businesses operating in high-risk countries

 

300

Cases reported and managed via our global whistleblowing system Speak Out during 2017

G4S At a glance

At a Glance (204 KB PDF)

G4S is the world’s leading global, integrated security company specialising in the delivery of security and related services across six continents.

We offer a broad range of security products and services on a single, multi-service and integrated basis. We have been investing in technology, software and systems. The Group’s technology-related security revenues were £2.45 billion in 2017.

Secure Solutions (84%)

Security Services and Technology (77%)

Care and Justice Services (7%)

Cash Solutions (16%)

Cash Solutions

OUR STRATEGY

Our strategy addresses the positive, long-term demand for security and related services, and our enduring strategic aim is to demonstrate the values and performance that make G4S the company of choice for customers, employees and shareholders.

We aim to do this by delivering industry-leading, innovative solutions and outstanding service to our customers, by providing engaging and rewarding work for employees and by generating sustainable growth and returns for our shareholders. These aims are underpinned by the key programmes in our strategic plan:

Strategy and Performance

Strategy and Performance (1.6 MB PDF)

This section summarises how we have prioritised the implementation of the Group’s transformation, focusing our resources and expertise in areas where we can achieve the best results for customers and appropriate sustainable returns for investors.

PEOPLE AND VALUES

We recruit, develop and deploy the best people in our industry

47% Reduction in fatalities from 2016 to 2017

Strategic priorities

  • Attracting and retaining the best people
  • Creating the right culture
  • Defining our societal impact
  • Building capability
  • Engaging for success
  • Promoting the right organisational culture
  • Improving health and safety
  • Respecting human rights
Key risks

  • Our trained and skilled people are hired by competitors or other companies or do not behave in line with the Group’s values, resulting in a negative impact on customer service or those in our care
  • Negative impacts on our employees’ health and safety

CUSTOMERS AND SERVICE EXCELLENCE

We build long-term customer relationships based upon trust and understanding of our customers’ businesses and objectives

£1.4bn Annual contract value of substantial new business won

Strategic priorities

  • Positive demand for security services
  • Large diversified customer base and sales pipeline
  • Investment in sales leadership and account management
  • Net promoter score and contract retention
Key risks

  • Failure to understand customers’ changing needs or falling short of customer expectations

TECHNOLOGY AND INNOVATION

We design, market and deliver innovative, industry-leading technology and services that protect and add value for our customers wherever they operate

30% Growth in cash management technology locations in 2017

Strategic priorities

  • Well-positioned for trends towards more technology with disciplined capital allocation
  • Secure Solutions - integrated security
  • Investing in world-leading proprietary products and services
  • Cash Solutions - Bank and Retail cash technology
Key risks

  • Failure to market or deliver our services and technology effectively or failure to deliver adequate value for money

OPERATIONAL EXCELLENCE AND PRODUCTIVITY

We have secure, safe, reliable and efficient operations

4.2% Increase in Adjusted PBITA from core businesses in 2017

Strategic priorities

  • More focused business - cultural change
  • Reinvesting for growth
  • Productivity programmes - good progress but more to do
  • Efficient organisation design and management de-layering
  • Procurement and property
  • Operational excellence
  • IT-enabled lean processes
Key risks

  • Failure to comply with our standards results in harm, loss of expertise or investment fails to deliver benefit

FINANCIAL AND COMMERCIAL DISCIPLINE

We manage risk effectively and ensure we provide profitable, cash-generative services

2.4x Net debt/Adjusted EBITDA at December 2017 in line with our target set in 2016

Strategic priorities

  • Contract risk management
  • Portfolio management
  • Operating cash flow
  • Strengthening collections performance
  • Managing accounts payable
  • Capital allocation
  • Changing behaviours
Key risks

  • Inefficient capital management and failure to comply with Group risk management standards

MARKET-GROWTH DRIVERS

Market-Growth Drivers (90 KB PDF)

Secure Solutions (84% of revenues)

Cash Solutions (16% of revenues)